§ 12 — Tax
When should you sell to minimise CGT?
The 50% CGT discount, financial year boundaries, and your marginal rate all interact. Enter your asset details and intended sale date — we'll show you the tax cost of selling now versus waiting, and flag the exact date your discount unlocks.
Your inputs
For Australian residents. Assumes current value held constant.
Timing analysis
Enter your asset details and intended sale date to see how timing your sale affects CGT — including whether waiting until the next financial year could save you thousands.
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The three CGT levers every investor should understand
Capital Gains Tax in Australia is not a fixed rate — it is your marginal rate applied to a potentially discounted gain. Three variables determine the final bill: whether you qualify for the 50% discount, which financial year the gain falls in, and how large your other income is in that year.
The 50% discount is the biggest lever. On a $300,000 gain at a 47% marginal rate, selling after 12 months saves $70,500 compared with selling one day earlier. The exact unlock date — purchase date plus one year plus one day — is flagged in the results above.
Financial year timing matters even when the discount already applies. Deferring a June sale to July pushes the taxable gain into a new financial year. If you expect lower income next year (career break, retirement, parental leave), that deferral can drop you into a lower marginal bracket and reduce CGT further.
Partial sellslet you spread a large gain across multiple years. Selling 50% of a share parcel this financial year and 50% next year keeps each year's taxable gain smaller, which can prevent you being pushed into the top bracket. The "portion to sell" slider models exactly this trade-off.
Frequently Asked Questions
What is the 50% CGT discount and how do I qualify?+ open
Australian resident individuals who hold a capital asset for more than 12 months before selling can discount the capital gain by 50% before adding it to taxable income. On a $200,000 gain, only $100,000 is added to your income. The discount does not apply to companies or assets held 12 months or less.
Why does waiting until the next financial year sometimes save CGT?+ open
Australia's financial year runs 1 July to 30 June. Deferring a sale from May to July pushes the taxable gain into the following year — giving you more time to use deductions, offset losses, or qualify for the 50% discount if you are just short of the 12-month mark.
What is a partial sell and how does it affect CGT?+ open
A partial sell disposes of only a percentage of your holding. CGT applies only to the gain on the portion sold. Selling in tranches across different financial years can spread the taxable gain and keep you in a lower marginal bracket each year.
Can I use capital losses to offset capital gains?+ open
Yes. Capital losses from the same or prior years reduce your capital gain before the 50% discount is applied. This calculator does not model capital losses — for complex situations, consult a registered tax adviser.
How is CGT different from income tax in Australia?+ open
CGT is not a separate tax — the capital gain (after any 50% discount) is added to your other taxable income and taxed at your marginal rate. Your total income for the year, including salary and investment income, determines the marginal rate that applies.